Jerusalem (Dec. 16)
The Jewish Agency for Palestine announced officially today that it had secured a loan of $2,500,000 for its work in Palestine.
The income of the Jewish Agency and the Keren Hayesod (Jewish Foundation Fund) has been pledged as security, it was stated. Lloyds of London took $2,250,000 of the loan, while the Anglo-Palestine Bank took the remaining $250,000.
The loan is for a period of fifteen years at four per cent interest. Under the terms of the agreement, the interest rate may be increased if the Bank of England raises its discount rate, but the rate may not exceed four and one half per cent.
The loan is repayable in monthly installments of $19,000.
Negotiations for the loan began in April of this year when Eliezer Kaplan, member of the Jerusalem Executive of the World Zionist Organization, left for London. The decision to raise a loan was taken at a meeting of the powerful Actions Committee of the World Zionist Organization, which met in Jerusalem in March.
The money raised in London will be used to consolidate the outstanding debts of the Zionist bodies, it was stated.